A Consultant's Secret: Optimize Entrepreneurs, Not Organizations

When I graduated from business school, I was prepared to optimize organizations. I was ready to analyze spreadsheets, evaluate market forces, and build great business plans on paper.

But since my passion is consulting entrepreneurs, I quickly learned that I had to throw away the clinical approach I learned in school. When working with entrepreneurs, I first need to optimize the entrepreneur, and the organization will follow.  

The opportunity for success in an entrepreneurial organization is directly related to the entrepreneur’s personality, management style, and risk tolerance. 

Once I learned this critical insight, I adapted my business consulting style to specifically address each of my clients’ unique entrepreneurial strengths, and set out to maximize those strengths before addressing the rest of the business. 

Of course, I still start every consulting engagement with a full financial review, which gives me a foundational understanding of where the business stands. I also interview employees and customers to determine the health of professional relationships in the business.

But what I'm really looking for are clues about the entrepreneur himself. I'm watching for hints about how the entrepreneur is doing as a leader and a manager. For example, is he disconnected from his financials? Obsessed with cutting insignificant costs while failing to see growth opportunities?

Does he consistently blame his employees and customers for being difficult or "not very smart?" Does he have high customer turnover and low quality scores? Or does he have great customer relationships and feels like his employees are "like family," but he isn't making a profit? 

An entrepreneur's behavior and beliefs surrounding his financials, employees and customers gives me insight into the deepest challenges and opportunities facing the organization. Because an entrepreneurship is directly tied to the ability of the entrepreneur to guide the ship. An overwhelmed entrepreneur will run an out-of-control business, while an optimized entrepreneur will run an optimized business.

We can fix all entrepreneurial business problems by focusing in on the entrepreneur's strengths and optimizing around them. Rather than focusing on what doesn't work in the business, we focus on the entrepreneur's strengths. Once we optimize the entrepreneur, we gain a whole new momentum for the business.

The more I learn about each entrepreneur’s psychology and behaviors, the more accurately I can structure strategic business plans that maximize each business opportunity. If I take the business school approach and create a strategy based on the standard elements like market conditions, product, customers and other external factors, I miss the boat entirely. I’ve seen it happen time and time again.

When I don't try to change an entrepreneur, but instead optimize him and the organizational structure based on his strengths, we are able to transform the business. 

Entrepreneurial optimization is the only way I have successfully impacted my clients’ businesses. By seeing them for who they really are, and building structures to support them, I am able to help them achieve much greater success in their organizations.

The People Problem in Business

Source: http://dupress.com/periodical/trends/global-human-capital-trends-2014

Getting an MBA prepared me for the "sexy" side of business: namely finance and marketing. But it didn't prepare me for what I think is the hardest part of running a business as an entrepreneur: the People Problem.

If you are struggling with a disengaged workforce, are struggling to hire and retain great employees, and are generally frustrated with your people, you are not alone.

Gallup research shows that only 13% of employees around the world are actively engaged at work, and more than twice that number are so disengaged they are likely to spread negativity to others.

So, not only do you have lackluster employees, more than 26% of them are actively disengaged, spewing their frustration with you and your management style through the entirety of your organization and beyond.

One negative employee spreads yuckiness  like a virus.

These "actively disengaged" employees are like a virus: they spread their distrust and evil thoughts to everyone else.

I really wish that the People Problem was a big business problem, but it spreads through small businesses and entrepreneurships, too.

So if you are going to work every day feeling like your people aren't as peppy as they used to be ... that they don't seem to care as much ... that deadlines are getting missed and customers are being let down, you are probably right. You are probably encountering the dreaded "People Problem."

I promise that I will offer solutions in future blog posts, but for now, here are the top four warning signs of a disengaged workforce:

1. Frequent push-back and fighting in meetings
2. Doodling, napping and otherwise ignoring others during meetings
3. Angry outbursts, including yelling, crying and running away
4. Snarky, rude and unfriendly emails

If this is happening to you, I'm so sorry. But please know that you are not alone, and you don't have to deal with this alone. But also don't minimize the problem. A disengaged workforce destroys entrepreneurial companies and is the most common reason I see for flat-lining and dead businesses.

Hang in there ... more to come ...

How to Scale Your Business: Get Out of the Way

I was fortunate enough to meet with David Van Andel, Chairman and CEO of the Van Andel Institute, a medical and scientific institute in Grand Rapids, Michigan that was founded in 1996 by philanthropists Jay and Betty Van Andel with an estimated endowment of $1B. We discussed the state of medicine, healthcare and business, and I told him about the state of small business and entrepreneurship as I see it today.

David is the son of Jay Van Andel, great American entrepreneur who co-founded Amway, one of the world's largest direct selling businesses. After 55 years, the business continues to grow and expand throughout the world, employing more than 15,000 people.

The key in building an organization like Amway, David told me, was in recognizing that while the business could be based on personal values and individual industry, if the founders didn't expand their circle and trust others to do the work, they would have a much smaller impact. This is something that David integrates into his leadership of the Van Andel Institute.

In his book, An Enterprising Life, Jay Van Andel says that from the very beginning he and his partner, Richard DeVos, hired people to do things they couldn't do themselves, and they quickly recognized that this was an asset compared to their competition.

"(We learned) to stay out of the shop and let other people do what they do best," wrote Jay Van Andel. "Delegating responsibility is essential - even for some of the most important work."

What I observe in many entrepreneurs is that they are somewhat stuck in the small business mindset that "if I don't do it, it won't be done right." This perspective makes meaningful growth virtually impossible, because the company can only scale so far around a single human being.

An entrepreneur who wants to build something large needs to be able to scale his business across multiple people, and to put leadership, authority and opportunity in employees' hands.

Virginia Ginsburg is founder and chief consultant at Swell Strategies. She is passionate about supporting small business owners and entrepreneurs in starting and running successful enterprises. An avid reader, in this blog she reviews books and articles and relates specific learning points back to entrepreneurial businesses.

If Your Employees Were Like You ... They Would Leave!

Your Employees are Not Clones

Something almost every entrepreneur struggles with is managing and leading employees. The skills required to skillfully manage and lead are very different from those required to build an enterprise (i.e. design, sales, production). And while most entrepreneurs start businesses based on their innate talents, employee management is not typically the sharpest tool in their toolbox. 

I hear a lot of entrepreneurs wondering why their employees aren't more self-motivated, aren't "stepping up to the plate" and "running the ball down the field." The fact is, if your employees were naturally that way, they probably wouldn't be working for you - they would be out starting their own companies.

Entrepreneurs have a unique drive to build something of their own. The people who are working for them are coming to a job. They expect to be told what to do and they need to be managed throughout the process. And, yes, they also expect to be lead and inspired. 

This is where most entrepreneurs need some leadership training. Setting up the structures and expectations within your organization while also maintaining positive energy are critical skills that you need to develop. Yes, you can try to outsource employee management, but while I have seen many people try, I have not seen anyone do this without first learning leadership themselves.

If you want to build an organization, then you need people working for you. Thus, you simply must learn how to lead them to succeed.  

When you invest in your leadership skills, you set yourself up to overcome the limitations that hold most small businesses back. 

What are you waiting for? Go out and lead! 

Virginia Ginsburg is founder and chief consultant at Swell Strategies. She is passionate about supporting small business owners and entrepreneurs in starting and running successful enterprises. An avid reader, in this blog she reviews books and articles and relates specific learning points back to entrepreneurial businesses.

Do You Have to be a Jerk to Succeed?

Why So Many Tech Founders Who Are Jerks Become Insanely Rich And Successful, by Alyson Shontell, Business Insider  

What She Says: Those in the know just can't help but notice that many of the top execs in Silicon Valley - and elsewhere - are arrogant at best; jerks at worst. In fact, the list of top Silicon Valley entrepreneurs who are also jerks is long.

But some venture capitalists are bucking the trend and implementing a "no asshole policy." The sad thing is that they recognize that making the personal choice not to work with jerks may negatively impact their ability to invest in the companies with the biggest pay-offs.

What This Means For You: I think the trend towards jerks in leadership positions is powerfully reflected in the business media, and I do think there are some aspects of massive success that are somehow linked to being a jerk. But that doesn't mean that people who are not jerks aren't successful.

What you may need to decide is whether you are willing to sacrifice being a good person - and being around good people - in exchange for massive amounts of money.   

Not to get too heavy, but what is your soul, your "goodness" worth? 

For me personally, I have instituted a "no assholes" policy. So if you're an entrepreneur who wants to make money but not be a jerk, then I'd like to get to know you!

Virginia Ginsburg is founder and chief consultant at Swell Strategies. She is passionate about supporting small business owners and entrepreneurs in starting and running successful enterprises. An avid reader, in this blog she reviews books and articles and relates specific learning points back to entrepreneurial businesses.

How Big is Your Mountain?

Human nature is not unlike water; it will seek the path of least resistance downhill.

When you are setting goals for your business, for yourself, and for your employees, you always need to keep this in mind: how big is your mountain? How distant and complex is the path downhill?

Sometimes I see entrepreneurs hold back from their true vision. They are afraid to make it too big because then failure will feel worse. But that's not true. Failure from great heights feels better than the knowledge that you never even tried.

If you want to build something big and beautiful, then make sure you envision craggy peaks, great heights, and majestic, awe-inspiring beauty. Sure, when things get overwhelming, focus in on small sections, but don't use that as an excuse to miss out on the excitement and energy you get from creating a massive, worthwhile vision. 

If you do this, you will notice that the water will meander, and it will even have to fall sometimes to overcome the massiveness of your mountain, but, surprisingly, such activities only add to the overall impact of your final achievement. Also, remember that streams can be diverted and redirected - no matter how big your mountain, you can always change the path of the details.

Virginia Ginsburg is founder and chief consultant at Swell Strategies. She is passionate about supporting small business owners and entrepreneurs in starting and running successful enterprises. An avid reader, in this blog she reviews books and articles and relates specific learning points back to entrepreneurial businesses.

The Energetics of Entrepreneurship

The Power of Full Engagement, by Jim Loehr and Tony Schwartz

What They Say: Organizations, like individuals, are energetic entities. In order to optimize the organization, you must pay attention to the fundamental energy requirements: physical, emotional, mental and spiritual. Energy is depleted with use, and must be balanced with recovery.

What This Means For You: The holiday season is frequently a time of high stress for all people, and for entrepreneurs who are already struggling under tremendous pressure, it might just send them over the edge. If this is you, please take time to take care of yourself: the health of entrepreneurial companies are directly related to the health of the entrepreneur(s) at their helm.

A business is not a computer program that you can "set and forget;" it is a living, breathing organism that requires each of its parts to be healthy in order for the whole to thrive.

Take care of yourself, and pay attention to the health of your employees. Your business will reflect the health of the people working within.

Virginia Ginsburg is founder and chief consultant at Swell Strategies. She is passionate about supporting small business owners and entrepreneurs in starting and running successful enterprises. An avid reader, in this blog she reviews books and articles and relates specific learning points back to entrepreneurial businesses. 

Are You Working On Your Business?

The E-Myth Revisited by Michael E. Gerber

What He Says: Perhaps the most famous concept that sticks from this popular book for small business owners is that you should be working "on" your business; not just "in" your business. The most effective entrepreneurs spend time managing day-to-day issues, but also consistently take the time to pull back and plan for the future.

What This Means for You: Running a business requires firefighting most of the time, but if you are always in crisis mode, you are never taking the time to prepare for and avoid future crises. If you don't lose your competitive edge first, you will end up burned out and sick of your business.

No matter how busy your business is, you  must take time at least once per week to take a strategic look at critical internal and external factors that will impact your long-term success.

Here is one possible agenda for this weekly strategic business meeting:

 

Virginia Ginsburg is founder and chief consultant at Swell Strategies. She is passionate about supporting small business owners and entrepreneurs in starting and running successful enterprises. An avid reader, in this blog she reviews books and articles and relates specific learning points back to entrepreneurial businesses.

 

Business Lessons from the Football Field

As a USC Fan, I spend most of my time analyzing the leadership on and off the football field. This year, we had some really interesting development in terms of leadership.

After a very rocky 2 years, Lane Kiffin was kept on at USC despite deep rumblings pushing for his exit. I, like many people, thought that Kiffin just needed more time to get over the restrictions based on the severe NCAA sanctions imposed in 2010.

When Kiffin was fired immediately following a September loss to Arizona State, I thought we were in for real trouble. How would the team react to losing their leader? Surely it would take a long time to recover from such a blow, and we certainly couldn’t expect a new coach to come in and turn things around quickly.

But Interim Coach Ed Ogeron, longtime assistant coach, stepped in and won the very next game against Arizona. He won 6 out of 8 games.

This really shows the difference leadership makes. A bad leader can bring a winning team down, and a good leader can bring a team to the top, despite terrible odds.

From what I can tell, a lot of the difference between Ogeron and Kiffin is energy – Ogeron is described as “enthusiastic,” and his locker room talks are loaded with heart, while Kiffin was most often described as “steady” and “professional.” 

What type of leader are you for your small business? Are you having a losing season? Consider how your energy and attitude is impacting your team’s ability to win. Then, go get ‘em!

**Note: after I wrote this blog post, we learned that Ed Ogeron was passed over for the head coach position at USC. He promptly quit. I'm not sure exactly what happened from an administrative perspective, but from a management perspective, this is really sad. Ed worked at USC for 11 years, then stepped in and made us a team again, and now "management" has decided to pass him over for someone else. Best of luck to Ed, and thank you for your work! 

 Virginia Ginsburg is founder and chief consultant at Swell Strategies. She is passionate about supporting small business owners and entrepreneurs in starting and running successful enterprises. An avid reader, in this blog she reviews books and articles and relates specific learning points back to entrepreneurial businesses.




Going the Extra Mile will Get You Even Farther

by Jack Canfield

In life, victory often goes to those who make a 100% commitment to the outcome. They give it their all and put everything they have into getting their desired result... whether it be an Olympic gold medal, the top sales award, a perfect dinner party, or an A in microbiology.

It's a simple concept, yet you'd be surprised how many people don't stick to their disciplines, follow through with their plans, or go the extra mile.

Are you someone who consistently goes the extra mile and routinely over delivers on your promises?

It's rare these days, but it's the hallmark of high achievers who know that exceeding expectations helps you stand above the crowd. Almost by force of habit, successful people simply do more.

As a result, they experience not only greater financial rewards for their extra efforts but also a personal transformation, becoming more self-confident, more self-reliant, and more influential with those around them.

These high achievers stand out from the crowd because of their extra efforts. They are unwilling to give up, even in the face of difficult times.

They get the promotions, they get the loyal customers, they grow their businesses twice as fast, they get financial rewards, job security, and they go home feeling satisfied.

Do you exceed expectations?

Do you surprise people with more than they were expecting from you?

Do you have the opportunity - but also the personal initiative - to go the extra mile?

To be successful you must change your thinking. You can only win by making extra efforts. People who go the extra mile always get payback. You will discover yourself becoming more self-confident, more self-reliant and more influential with those around you.

People notice the special services and all the small touches that make dealing with you so pleasurable. And when they are talking to their friends they will mention you and recommend you because you are the one who stands out.

People will see that you pay attention to detail, that you consider all the small things that really make a business successful, that you care about your image, and that you belong with all the other people who work hard to achieve. You will attract new business and new opportunities.

Listen to any success story and you will hear of someone who worked exceptionally hard to get what they wanted.

You’ll hear how they put in the extra time, did what wasn’t part of their job description, and over-delivered on what was asked of them. You’ll hear how they stuck at it until they broke through, and usually you’ll hear how it only took them a couple of years to do it.

What have you been doing for the past couple of years? Think of what you could accomplish if you made it a habit to exceed everyone’s expectations. Image what doors could be open to you if you decided to be of better service and value.

How are you willing to go the extra mile? What kind of extra service are you willing to provide in order to stand out from the rest? What areas of your life could you be giving more of your effort and time, becoming more valuable, and improving your reputation?

Be willing to treat everyone like you’d treat your dearest friend. Don’t skimp on service. Don’t be mediocre or run of the mill. Show people what you are capable of. Show them that you care about your image and reputation.

When it comes to success, the people who are willing to go the extra mile get there that much faster!

* * *

Are you "stuck" in this area?
Send me your most pressing question about this topic, then join me for our monthly Ask Jack Canfield Tele-Clinic on November 3rd. www.AskJackCanfield.com
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All Rights Reserved.


Jack Canfield, America's #1 Success Coach, is founder of the billion-dollar book brand Chicken Soup for the Soul© and a leading authority on Peak Performance and Life Success. If you're ready to jump-start your life, make more money, and have more fun and joy in all that you do, get your FREE success tips from Jack Canfield now at: www.FreeSuccessStrategies.com

Leading Under Pressure for Small Business

by Erika H. James

Erika H. James is an associate professor of business administration at the University of Virginia's Darden School of Business. Here's her guest post on how small business owners need to be prepared in the event of a crisis.

This past summer the book that I co-authored with Lynn Perry Wooten, Leading Under Pressure: From Surviving to Thriving Before, During, and After a Crisis, was released with great fanfare and interest. The timing could not have been more perfect for its debut. It hit bookshelves and online outlets in the midst of the BP/Deepwater Horizon oil rig explosion and subsequent oil spill. The country was riveted by video of oil gushing endlessly from the debilitated underwater rig in the Gulf Coast, and we were drawn into the 24-hour news cycle reporting of the ineptness with which BP executive Tony Hayward handled the public relations aspect of crisis response. Technically, the oil giant may have done all the right things to stop the leak and contain the oil, but the public could not get beyond the PR gaffes to show much empathy for the firm. In the midst of this crisis comes Leading Under Pressure, and the need for such a book was crystal clear.

To be completely frank, however, we wrote Leading Under Pressure with the Fortune 500 firms in mind. The executives leading those firms were our intended audience, as we felt they needed the most help. Interestingly, however, over the past several months, we have received more speaking requests from small to medium-size firms and from government agencies or other non-profits. In preparing for those talks, we realized that the core principles of the book apply, regardless of one's profit status or size. Although the consequences of crisis for the small business may be less dramatic, and therefore less public, they are no less severe and painful for the people working for and leading those firms. With that in mind, I present the "Top 5 Things a Small Business Owner Should Know About Successfully Leading Under Pressure":


1. Effective crisis handling requires more than good PR. In fact, in the book we rarely use the term crisis management, preferring instead to highlight the importance of leadership during difficult times. Crisis leadership encompasses PR, to be sure, but it necessarily goes beyond the communication side of crisis handling to include key leadership capabilities.

 2. Not all crises are the same. A simple but effective way to distinguish crisis types is with the labels Sudden Crisis vs. Smoldering Crisis (terms introduced to me by my colleagues at the Institute for Crisis Management). We are all familiar with the natural disasters, acts of terrorism, or workplace violence that constitute the sudden crisis category, but did you know that nearly three-quarters of crises are smoldering in nature? Smoldering crises are the small internal problems in a firm that, if ignored, can become a crisis. Labor complaints leading to class action lawsuits or product defects leading to recalls are two common examples of smoldering crises.

3. Leadership under pressure is a state of mind. Those managers, owners, team leaders, etc. who are able to scan the environment and see problems on the horizon as well as possibilities for a greater tomorrow are more likely to eventually reap the proverbial opportunity from a crisis situation.

4. Specific competencies are particularly relevant for leading under pressure. These include the ability to make quick and ethical decisions and to take risks even in the face of a threat in addition to possessing a passion for learning and a capacity for building trust across all stakeholders. Over time, leaders who do these things well ultimately help prevent crises.

5. Pay attention to impact on and input from all stakeholders. It is all too easy to become blinded by those stakeholders with the loudest bark or who have the most power or control over the organization (e.g., regulators, lending institutions, activists, or private investors) and to lose sight of other stakeholders who may actually need leadership's attention more. Certainly, you cannot ignore the powerful groups, but neither can you cower to them at the expense of employees and customers, who, at the end, of the day do more to keep the small business alive then almost any other group.

Erika H. James is an associate professor of business administration at the University of Virginia's Darden School of Business.

This article was originally posted on the blog, The Business of Being Monique.

Women Entrepreneurs the Secrets of Success for Monday, September 27th

Dr. Donna Thomas-Rodgers

Dr. Donna was born and raised in Detroit Michigan. As a child Dr. Donna did not talk very much in her early years. She used that time to take it all in. She knew that one day she would speak and she wanted to have something great to say.

Dr. Donna attended Detroit Public Schools and was awarded a ROTC scholarship to attend college. After Graduating from College, Dr. Donna served in the U.S. Army as a Military Police Officer. It was during this time that Dr. Donna discovered her passion for leadership and changing the lives of those that she led. She realized then that she said had a great impact on those within her influence.

Dr. Donna served five and half years as a commissioned officer and then decided to change course and venture into Corporate America. She took a position with Frito-Lay in Orlando, Florida. During her time with Frito-Lay Dr. Donna has worked in every capacity of the Operations Function of the business. She has received several promotions during her career.

Dr. Donna has over 14 years of leadership experience. She is an expert in soldier, personal, leader, employee and team development. She has lead over 1,000 soldiers and 500 employees. Dr. Donna has conducted years of research and understands the components to achieving success in any industry.

Dr. Donna has the ability to transform people and organizations. She has a realistic approach to every situation. Her style is different than most. Her methods though unconventional are very effective.

Her vision is simple: Meet your potential!

Dr. Donna has a B.S. Public Law and Government, an M.S. Criminal Justice and a Ed.D Organizational Leadership. She's affiliated with Toastmasters International, Alpha Kappa Alpha Sorority, Inc. and Women of Color Alliance.

Her certifications and training include Level III Inclusion and Diversity Training, Continuous Improvement Master Trainer, Region Performance Based Trainer and an Air Assault Badge.

12:00 pm EDT
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Women Entrepreneurs the Secrets of Success for Wednesday, September 15th

Maria Gamb

As a former Fortune 500 trailblazer, Maria Gamb served for twenty-plus years as an executive in businesses valued at upwards of $100 million. What were her keys to corporate success? Blending creativity, divine inspiration, and straightforward communication. Now, as the founder, CEO, and "Chief Change Agent" of NMS Communications, she shares her vast business skills, life experience, and knowledge of universal laws to help executives and entrepreneurs alike claim their ability to lead profitable, effective businesses that are providing great value to those they serve.

Ms. Gamb believes that a new breed of leadership is emerging, which bridges the gap between the harsh practicalities of business and the intuitive nature of Spirit-and it's this gap that she bridges with her own lecturing and teaching.

Ms. Gamb's career has taken her across the globe. She has lived for significant periods in Australia and England and worked in countless others. Her understanding and appreciation of cultural differences and the inner workings of different kinds of industries and their leadership make her a force to be reckoned with in the global business landscape.

Ms. Gamb works from a loft in Brooklyn, New York, where she pursues her passion to help businesspeople transform the world through her one-on-one and group executive mentoring programs, sales of online products, and public speaking. For more information about her programs and services go to: www.mariagamb.com. She is also a journalist for the online powerhouse Newswire.com and a featured business expert in the new magazine Belle Petite. Her book "Healing of the Corporate World" is set for release on Oct 12th, 2010. www.MariaGamb.com

12:00 pm EDT
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